Elekta Ab Class B · OMXSTO:EKTA_B
Elekta Ab Class B — Investor Day (June 2011)
105 slides from Elekta Ab Class B's investor day presentation, Jun 9, 2011
Slide 1: Welcome to Elekta
Welcome to Elekta Capital Markets Day 2011 Tomas Puusepp President and CEO
Slide 2: Capital Markets Day 2011
Capital Markets Day 2011 09.00 Market fundamentals ● Outlook ● Strategy Tomas Puusepp, President and CEO 09.40 Financial update and near term outlook Håkan Bergström, CFO 10:00 Coffee break 10.30 Region Asia Pacific Ian Alexander, EVP Region Asia Pacific Market update ● Performance ● Strategy 10.50
Slide 3: Excellent performance
2010/11: Excellent performance • Demand remained strong – Elekta continued to gain market share • Order bookings + 10%* – Emerging markets growing in importance • Net sales increased by 13%* • Operating profit + 22% to SEK 1,502 M – EBIT margin 19.0% (16.7) • Earnings per share increased 21% to SEK
Slide 4: Global radiotherapy market
Global radiotherapy market Market share Trend Varian 47% Elekta 31% Accuray/Tomo 9% Siemens 7% Others 6%
Slide 5: Continued to deliver on our targets
Continued to deliver on our targets Net Sales SEK M Profitability SEK M 8 000 1 500 20% 19% 7 000 17% 1 250 16% 6 000 Aftermarket & Software Sales 1 000 13% 5 000 12% 12% 12% 750 11% 4 000 10% 8% 3 000 500 Hardware 2 000 Sales 4% 250 1 000 0 0 0% 2005A -06A -07A -08A -09A -10A -11A 2005A -06A -07A -
Slide 6: Market Fundamentals
Market Fundamentals
Slide 7: Strong underlying demand trends
Strong underlying demand trends • As life expectancies rise globally, the number of cancer patients will increase • Improved survival rates creates additional demand • Radiation Therapy (RT) remains significantly cheaper than chemotherapy and surgery • Increased incidence of metastatic disease incre
Slide 8: Lack of capacity
Lack of capacity Large regional differences in availability of cancer care NORTH AMERICA Installed base: 3,700 No. of persons/linac ASIA PACIFIC USA: 84,000 Installed base: 2,900 No. of persons/linac: 1,246,000 EUROPE Installed base: 2,500 No. of persons/linac Germany: 171,000 Scandinavia: 135,000 B
Slide 9: Linac penetration in relation to healthcare spend
Linac penetration in relation to healthcare spend Healthcare spend per capita and installed linacs per million inhabitants USD and units installed 12 USA 11 10 9 Ireland Denmark 8 Linacs Sweden1 Norway per million 7 people Japan Australia Switzerland 6 Taiwan Germany Netherlands Belgium Austria 5 UK
Slide 10: Growth Strategy
Growth Strategy
Slide 11: Strategic beliefs
Strategic beliefs • A new socket in an emerging market has an implied value in terms of local branding, network effect and future replacements • Distinction between software and hardware will disintegrate in established markets • Our unique position as owner of a gold standard technique and proven p
Slide 12: Elekta positioned to capture accelerated growth
Elekta positioned to capture accelerated growth 2011 – Focus on delivering value with solutions - 2010 ”From machine 1st priority Accelerate growth to systems” – from systems to solutions - 2005 • Grow share in established markets with leading extended ”Perfecting the • Full system portfolio solutio
Slide 13: Elekta positioned to capture accelerated growth
Elekta positioned to capture accelerated growth 2011 – Focus on delivering value with solutions - 2010 ”From machine 2nd priority Grow the margin and establish to systems” industry leading efficiency" - 2005 • Measures to improve G&A efficiency ”Perfecting the • Full system portfolio machine” throug
Slide 14: Strategy for sustainable profitable growth
Strategy for sustainable profitable growth Outlook 2015 Growth accelerated to 13-15% • Increased investments in R&D for state-of-the-art clinical solutions • Capture growth opportunities in emerging markets • Build on market leading position in Neuroscience (Leksell Gamma Knife®) and Software (MOSAI
Slide 15: Elekta has strong performance in emerging markets
Elekta has strong performance in emerging markets 40-50% 40% 25-30% 45-50% Market share
Slide 16: Market characteristics and growth drivers
Market characteristics and growth drivers Established markets Emerging markets ≈300 projects/year: ≈600 projects/year: • Greenfield Characteristics • Replacements • “Bulky business” due to • Life Cycle Sales major cancer programs Growth 5-8% 10-20% • Reference centers Markets • Installed base - site
Slide 17: Emerging vs. Established markets
Emerging vs. Established markets Growth perspectives* 2010/11 2014/15 30% Established markets 40% 70% 60% Emerging markets *Net sales
Slide 18: Installed base of linacs growing at healthy rate
Installed base of linacs growing at healthy rate CAGR +8% Asia Pacific CAGR +16% 23% Europe, 50% Middle East and Africa North and 27% CAGR +6% South America CAGR +7% Year 2008-2011
Slide 19: Lifecycle services growing in importance
Lifecycle services growing in importance Key drivers of profitable growth North and South America Hardware 54% Lifecycle Services Europe, Middle East, Africa 37% Hardware 50% Lifecycle Services Asia Pacific 31% Hardware Lifecycle Services
Slide 20: Leveraging the installed base
Leveraging the installed base Un-tapped revenue potential for treatment planning software ≈ 50% ≈ 32% 17% Global TPS Global linac Global OIS share share share Source: Elekta
Slide 21: Large un-met need of Gamma Knife surgery
Large un-met need of Gamma Knife® surgery North America Traditional neuro market fairly well penetrated but ESTABLISHED large potential in onco MARKETS market and in upgrading SITUATION installed base Europe Low penetration Large un-met need Low penetration in most EMERGING countries MARKETS SITUATI
Slide 22: Opportunities for Leksell Gamma Knife
Opportunities for Leksell Gamma Knife® US centers (in 2009) by number of craniotomies1 annually 137 114 163 96 68 24 40 No SRS 106 88 111 15 Non-LGK, SRS only 31 16 Both LGK and non-LGK SRS 34 6 18 17 4 19 13 LGK only 3 19 8 6 1-50 51-100 101-200 201-350 >350 1 Based on Medicare data; multiplied by
Slide 23: Increased R&D for state-of-the-art technology
Increased R&D for state-of-the-art technology • Leadership in Stereotactic Radiosurgery, Stereotactic Radiotherapy and Oncology Information Systems • Seamlessly integrated offerings; products, services and software, with open interface • Addressing the disease
Slide 24: Market leading in products and services
Market leading in products and services Innovation through collaboration • Allocating 8-9% of revenues into R&D • Elekta’s development is assisted by its experience and established relationships with leading academic institutions Mergers & Acquisitions • Potential M&A targets are carefully screened
Slide 25: Outlook
Outlook
Slide 26: Guidance for fiscal year 2011/12
Guidance for fiscal year 2011/12 • Net sales is expected to grow by more than 10% in local currency • Operating profit in SEK is expected to grow by more than 10% – Currency effect expected to be negative on results FY10/11 by SEK 125 M – Operating profit in FY10/11 is expected to be significantly h
Slide 27: Human Care Makes the Future Possible
Human Care Makes the Future Possible
Slide 28: Financials
Financials Håkan Bergström CFO
Slide 29: Order bookings up 10% in 2010/11
Order bookings up 10% in 2010/11 Emerging markets - main growth driver 10 000 CAGR 14% 9 000 8 000 • The main growth is attributable 7 000 to emerging markets 6 000 • Strong Leksell Gamma Knife® 5 000 performance 4 000 3 000 • Japan – slightly delayed order process 2 000 1 000 0 05/06 06/07 07/08 08
Slide 30: North and South America
Regional overview North and South America May – April May – April SEK M Change 2010/11 2009/10 Order bookings 3% 3,507 3,415 Net sales 1% 2,818 2,792 • Order bookings in local currency increased by 7% Hardware 54% • North America: Linacs mostly a Lifecycle replacement market Services • Latin America
Slide 31: Europe, Middle East and Africa
Regional overview Europe, Middle East and Africa May – April May – April SEK M Change 2010/11 2009/10 Order bookings -5% 3,077 3,242 Net sales 2% 2,795 2,735 • Order bookings in local currency increased by 5% Hardware 37% • Strong growth in Russia and Turkey Lifecycle Services • Positive development
Slide 32: Asia Pacific
Regional overview Asia Pacific May – April May – April SEK M Change 2010/11 2009/10 Order bookings 18% 2,477 2,100 Net sales 23% 2,291 1,865 • Order bookings in local currency increased by 20% 31% Hardware • China, India and Australia showed Lifecycle strongest growth Services • Limited effects of e
Slide 33: Sharp increase in profitability
Sharp increase in profitability SEK M EBIT result EBIT margin 20% 1 500 1 250 16% 1 000 12% 750 8% 500 4% 250 0 0% 05/06 06/07 07/08 08/09 09/10 10/11
Slide 34: Improved operational leverage 2010/11
Improved operational leverage 2010/11 • EBIT improved SEK 300 M (+24%) excluding currency effects • Gross margin improved to 46.4% (46.1) + COGS reduction + Service efficiency – Geographical expansion • SG&A improved to 21.6% (22.7) + Streamlining organization and realizing synergies
Slide 35: Integration and coordination across Elekta
Integration and coordination across Elekta Efficiency improvement will enable Elekta revenue and investments in growth opportunities SG&A as % of sales 7,904 • Reduce SG&A cost by at least 0.5% 8 000 7 800 will enable investments in growth 7 600 7,392 opportunities 7 400 7 200 • We aim for a lean or
Slide 36: Strong balance sheet
Strong balance sheet Liquid assets (SEK M) 1,363 (1,174) Equity (SEK M) 3,833 +18% ROCE 35% (30%) Net debt/equity -0.13 (-0.04) Equity/assets ratio 43% (38%)
Slide 37: Support expansion in emerging markets
Support expansion in emerging markets Wide range of financial solutions Loans support Customer support to get loan from external financial institution Unsecured Customer pays over time, not deferred always with a letter of credit payments Leasing Customer leases equipment with option to include serv
Slide 38: Cash flow
Cash flow • Operating cash flow at SEK 840 M (1,056) – Strong earnings – Increase in working capital • Cash conversion rate at 59% – Lower cash conversion was mainly due to scheduled payments in April of ~SEK 150 M being received the first week of May in 2011 • Cash flow and working capital 11/12 ex
Slide 39: Building shareholder value
Building shareholder value SEK 12 35% EPS ROE 30% 10 25% 8 20% 6 15% 4 10% 2 5% 0 0% 04/05 05/06 06/07 07/08 08/09 09/10 10/11
Slide 40: Shareholder distribution
Shareholder distribution SEK M 400 In accordance with the dividend policy, the Board proposes a 350 dividend of SEK 4.00 (3.00) per share for 2010/11, 300 corresponding to approx. 250 SEK 378 M and 37% of net profit 200 * Repurchase 150 Dividend 100 50 0 05/06 06/07 07/08 08/09 09/10 10/11 * Propose
Slide 41: Outlook
Outlook Human Care Makes °° the Future Possible - E L E KTA
Slide 42: Currency - exposure and sensitivity
Currency - exposure and sensitivity • Given Elekta’s current exposure a 1% SEK M FX exposure 10/11 shift against all currencies towards the 4 000 Operating expenses SEK would effect EBIT by ca SEK 21 M Revenues 3 000 – Hedging is done for forecasted exposures up to 24 mth forward 2 000 • Currencies
Slide 43: Backlog Development
Backlog Development SEK M 9 000 8 000 7 000 6 000 • Backlog increased 14% in fixed currencies 10/11 5 000 4 000 • Continued good visibility of sales and earnings 3 000 • Healthy backlog development 2 000 for Leksell Gamma Knife® and Linacs 1 000 0 06/07 07/08 08/09 09/10 10/11
Slide 44: Regional outlook
Regional outlook North and South America • Stable demand in North America • Strong growth prospects in South America Europe, Middle East and Africa • Stable growth in most established markets • Some uncertainty of government healthcare spending in PIGS and in the UK • High demand in emerging markets
Slide 45: Human Care Makes the Future Possible
Human Care Makes the Future Possible
Slide 46: Region Asia Pacific
Region Asia Pacific Ian Alexander Executive Vice President Asia Pacific
Slide 47: Market area - Region Asia Pacific
Market area - Region Asia Pacific • Elekta serves 15 major markets across the region • Seven direct operations plus a network of distributors in other markets • Almost 60% of the world population but less than 30% of the linear accelerators (linacs) • Population aged 65 and over ranges from less tha
Slide 48: Market dynamics – Far East
Market dynamics – Far East Market share – New orders Other 10% Far East Markets Siemens 4% • Combination of sophisticated Elekta markets and emerging markets 41% • Emerging markets beginning to grow. Availability of skilled staff a limiting factor in many Varian 45% markets • Distributor business in
Slide 49: Market dynamics - Japan
Market dynamics - Japan Market share – New orders • Second largest device market globally with highly complex regulatory environment Other 14% • High installed base drives large replacement Siemens market, in all business areas 7% 28% Elekta • Elekta dominates in neuroscience and treatment planning,
Slide 50: Market dynamics - China
Market dynamics - China Market share – New orders • Third largest medical device market in the world - domestic manufacturers in low technology sector Other 2% Domestic 18% • Continued strong growth (15-20% annually) as country strives to deliver improved healthcare Siemens • Availability of skilled
Slide 51: Market dynamics - Australia / New Zealand
Market dynamics - Australia / New Zealand Market share – New orders Other 10% • Expansive geography with low population, established market demanding high Siemens 6% treatment capabilities • Breakthrough Gamma Knife sites will 52% Elekta drive SRS business Varian 32% • Elekta has a very strong softw
Slide 52: Market dynamics - India
Market dynamics - India Market share – New orders Other 6% • Standard of treatment continues to improve Siemens across region but still restrained by lack of 6% skilled staff and finance • Elekta will address customer training and 44% Elekta finance needs in FY 2011/12 Varian 44% • Highly competitiv
Slide 53: Key highlights - China and India
Key highlights - China and India China India Cancer incidence/year 2.6 million 1 million, 34% rise in next 5 years Average size of treatment 1.13 linac/center 1.95 unit/center center: Installed base, all suppliers 1,278 linacs (inc 400 domestic) 270 linacs (+250 Cobalt) Market facts • Annual linac u
Slide 54: Cancer incidence - Treatment in India
Cancer incidence - Treatment in India Approximately 960,000 new cases identified annually 70% Receive 3 radiation therapy 30% Treated 70% No treatment Approx. 3 million cases at any time. Of the 30% who receive treatment a high percentage receive RT because patients often present in late stages
Slide 55: Competitive situation
Competitive situation Human Care Makes () E LE KTA the Future Possible
Slide 56: Elekta's market position: Oncology
Elekta’s market position Oncology Delivery systems • Units installed total ≈3,000 • Units sold annually ≈300 Market share Market share 10/11 (Total Installed Base) BrainLab 2% CyberKnife 1% Other 19% Other 3% (Cobalt + older units) Tomo 2% Elekta CyberKnife 1% Siemens BrainLab 1% 23% 15% Tomo 1% 41%
Slide 57: Elekta's market position: Leksell Gamma Knife
Elekta’s market position Leksell Gamma Knife® Asia Pacific installed base SRS/SRT Market share – 109 units – 21 LGK Perfexion units BrainLab – 17 LGK Perfexion in backlog 20% Accuray 19% 61% Elekta Leksell Gamma Knife RO Far East 6% Australia 1% High installed base, especially India 6% in Japan. Hig
Slide 58: Elekta performance
Elekta performance Human Care Makes the Future Possible
Slide 59: Sales development - Region Asia Pacific
Sales development Region Asia Pacific USD M 325 300 275 CAGR = 25.8% +40% 250 225 Neuro 200 +39% Software 175 Oncology 150 125 100 +23% 75 50 25 0 05/06 06/07 07/08 08/09 09/10 10/11 -4.6% +36.9% +40.1% +28.4% +30.4%
Slide 60: Order and Revenue development
Order and Revenue development Region Asia Pacific Order development Revenue development USD M USD M 400 CAG 400 R CAG 356 350 21 350 R 330 % 30 300 286 300 % 253 250 244 250 200 Japan 200 196 Japan India India 150 150 FE FE 100 100 China China 50 ANZ 50 ANZ 0 0 FY 08/09 FY 09/10 FY 10/11 FY 08/09 FY
Slide 61: Elekta strategy
Elekta strategy Human Care Makes () E LE KTA the Future Possible
Slide 62: Elekta strategy for Region Asia Pacific
Elekta strategy for Region Asia Pacific Continue to develop the Customer needs; Meet the organization; fuel the demand for products & growth while delivering services required in Asia: improving margins Asia disease solutions; Finance, upgrade path #1 Improved workflow; Unmet demand; Software will c
Slide 63: Age of installed base report Q3 2010/11
Age of installed base report Q3 2010/11 Over 8 years old 20% Up to 3 39% Number of linacs years old 80 41% Potential 70 upgrade targets 60 50 40 Potential upgrade path: 30 • Hardware upgrades • Software upgrades 20 • Upgrade to IGRT 10 • Upgrade to VMAT 0 93/ 94/ 95/ 96/ 97/ 98/ 99/ 00/ 01/ 02/ 03/
Slide 64: Market outlook
Market outlook Opportunities • Strong underlying market demand – Aging population – Cancer incidence – Improving diagnostics – Low installed base in emerging markets • Developing organization – Increasing use of talent across region – Increasing investment in capabilities – E&T, finance, installed b
Slide 65: Summary
Summary Market will continue to develop rapidly as GDP levels increase and healthcare remains a priority Investment in further sales and support resources to ensure that new customers can be gained and retained Elekta is well positioned to capture and maintain the number 1 position in all markets
Slide 66: Human Care Makes the Future Possible
Human Care Makes the Future Possible
Slide 67: Region North America
Region North America Jay Hoey Executive Vice President Region North America
Slide 68: Market fundamentals - North America
Market fundamentals - North America Canada • 34,468,000 population • 174,000 new cancer incidences/year • 38 radiation oncology facilities United States • 308,745,538 population Cancer incidence • 1,529,560 new cancer incidences/year All cancers incidence rates, men and women • 2,170 radiation oncol
Slide 69: Market area – Canada
Market area – Canada • ≈ 38 radiation oncology centers – 14 sites have Elekta ROIS – 5 sites have RTP – 10 sites have Clarity – 2 have Elekta MOIS • ≈ 203 external beam delivery systems – 51 Elekta linacs in 12 centers • 6 MEGS in operation – 1 Elekta MEG • 4 Leksell Gamma Knife units – 3 Leksell Ga
Slide 70: Market area - United States
Market area - United States • 2,170 radiation therapy facilities – ≈ 1,340 sites have Elekta ROIS – ≈ 450 sites have Elekta RTP – 35 sites have Clarity • ≈ 3,620 external beam delivery systems – 413 Elekta linacs in 259 centers • ≈ 2,200 free-standing medical oncology practices – 241 sites have Elek
Slide 71: Market area - Mexico
Market area - Mexico • ≈ 109,000 new cancer incidences/year • Relatively lower incidence but data not reliable • Popular destination for alternative treatments – 13 Elekta linacs in 11 sites – 6 ROIS – 2 Leksell Gamma Knife® units
Slide 72: Economic outlook North America
Economic outlook North America • The recovery continues, but slowly – Spotty economic recovery – Mixed results in consumer, housing, manufacturing sectors – Growth in large, tech sectors shield weakness • New jobs being created, but growth slowing – Unexpected jobless claims rose in Q1 – Soft consum
Slide 73: Medical device outlook
Medical device outlook North America • US medical device industry – ≈ 95 Billion USD, 2010 • Headwinds – Admissions and procedural volume pressures – Healthcare reforms – Reimbursement pressure – Regulatory involvement • Tailwinds – New product launches – Aging population – 40 million, > 65 in 2010,
Slide 74: Medical device outlook
Medical device outlook North America Reimbursement pressure • CMS preliminary news by August • CMS final rules in November • Physician fee schedule pressure • More stable on hospital side • Downward pressure as 2012 approaches (economy, Affordable Care Act) • Affordable Care Organization (ACO) start
Slide 75: Oncology/Neuro market outlook
Oncology/Neuro market outlook North America • Radiation oncology equipment a replacement market – >85% linacs are replacement machines – New technology impacts replacement frequency • Population demographics increases demand – Higher cancer incidence with age – Geographic distribution impacts capaci
Slide 76: Financial highlights - Order trend by year
Financial highlights - Order trend by year North America +3.7% +1.8% +5.7% FY 07/08 FY 08/09 FY 09/10 FY 10/11
Slide 77: Performance FY 2010/11
Performance FY 2010/11 Elekta North America SW upgrades, meaningful use, replacements ROIS driving growth MOIS New products, increased focus driving growth RTP Installed base, service excellence driving Service growth Elekta leading position in SRS driving Neuro growth Linacs Competitor installed ba
Slide 78: Linac share - Installed base and new orders
Linac share - Installed base and new orders Region North America Linac share - installed base Linac share – new orders (FY10/11) (FY10/11) Management Analysis Siemens Siemens 4% Elekta Tomo/Accuray Tomo/ 3% Elekta Accuray 10% 11% 7% 19% Varian 74% Varian 72% Sources – IMV, MD Buyline, Internal Win /
Slide 79: Replacing Elekta installed base
Replacing Elekta installed base Linac age 70 60 50 40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Age
Slide 80: Service excellence
Service excellence Industry recognition KLAS recognizes MOSAIQ® with two critical awards Black Book honors Elekta MD Buyline ranks Elekta #1 with top 2011 rankings vendor in 2010 and 2011 Elekta MOSAIQ - #1 in Oncology Elekta - Top Honors Overall 2011* Elekta - Highest overall composite 2010 Top 20
Slide 81: Service and aftersales are key growth drivers
Strategy North America Service and aftersales are key growth drivers Linac share - installed base OIS share - installed base (FY10/11) (FY10/11) Siemens Elekta Tomo/ Accuray 10% 11% 7% Varian 36% 64% Elekta/ Siemens Varian 72%
Slide 82: Elekta North America going forward…
Elekta North America going forward… Installed base • Continue to improve service excellence • Advanced solutions for streamlined workflow, advanced treatments • Consulting solutions for process re-engineering Replacement market • Lower entry barriers into competitor sites • Financing flexibility SRS
Slide 83: Human Care Makes the Future Possible
Human Care Makes the Future Possible
Slide 84: Region Europe & AFLAME
Region Europe & AFLAME Olof Sandén Executive Vice President Europe & AFLAME
Slide 85: Covers a vast geographical area
Region Europe & AFLAME Covers a vast geographical area Region Europe & AFLAME in numbers 159 Countries 18 Time zones 16 Companies 480 People 310 in service
Slide 86: Market dynamics by key markets
Market dynamics by key markets Eastern Europe Western Europe • Growing interest for oncology • Mainly replacement and neuro in Central Asia business • Russia important market • After sales and service increasingly important • Distributors in many markets • Private share 28% • Private share 10% Middl
Slide 87: The region has shown consecutive double digit growth
The region has shown consecutive double digit growth over the last 5 years Order development Sales development EUR M EUR M 400 400 CAGR CAGR 350 350 14% 13% 300 300 250 250 200 200 150 14% 10% 25% 9% 150 10% 16% 11% 15% 100 100 50 50 0 0 '06/07 '07/08 '08/09 '09/10 '10/11 '06/07 '07/08 '08/09 '09/10
Slide 88: Elekta's market share in Western Europe
Elekta’s market share in Western Europe Order intake Western Europe Total order intake by type Accuray 3% Novalis 2% Tomotherapy 4% New Centers Siemens 10% 19% 45% Elekta New bunkers 19% 62% Replacement existing sites Varian 36% Note: Data includes linacs in Austria, Germany, Switzerland, Spain, Fra
Slide 89: Elekta has the highest market share in replacements and new centers
Elekta has the highest market share in replacements and new centers Replacement (62%) New centers (19%) New bunkers, existing sites (19%) Other 6% Siemens Other 3% 5% Siemens Other 24% 24% Elekta 37% 47% Elekta 46% Elekta Varian 42% Siemens 9% Varian 27% 30% Varian 1 Includes Accuray, Novalis, Tomot
Slide 90: Three main country groups in terms of healthcare spend
Three main country groups in terms of healthcare spend Health care spend per capita and installed linacs per million inhabitants USD and units installed 12 USA 11 10 9 Ireland Denmark 8 Linacs Sweden1 Norway per million 7 people Japan Australia Switzerland 6 Taiwan Germany Netherlands Belgium Austri
Slide 91: Growth drivers in the different country groups
Growth drivers in the different country groups Example of countries Growth drivers 1 Western Europe • Germany • Upgrading aging installed base High healthcare • Netherlands • New technology spend • Nordic • Increased cancer incidence 2 Western Europe • Spain • Underinvested healthcare sector Low hea
Slide 92: Emerging markets growing in importance
Region Europe AFLAME Emerging markets growing in importance Established markets Emerging markets (AFLAME) Other Elekta regions Share of Elekta’s orders FY 10/11 (FY 09/10) 40% 60% (37%) (63%)
Slide 93: Strong growth potential
Strong growth potential Markets showing greatest potential in Europe & AFLAME Turkey • Cancer incidence1: Men 182, Women 113 • Radiotherapy centers: 83 Russia • Cancer incidence1: Men 247, Women 179 • Radiotherapy centers: ≈140 Brazil • Cancer incidence1: Men 190, Women 158 • Radiotherapy centers: 1
Slide 94: Recent market trends
Recent market trends Country-specific initiatives/cancer investment programs 2010-2015 Turkey • 17 comprehensive cancer treatment centers • Ministry of Health Cancer strategy • 54 cancer treatment centers 2008-2010 • 14 dedicated chemotherapy centers • National Cancer Institute installed • Cancer sc
Slide 95: Recent market trends
Recent market trends Country-specific initiatives/cancer investment programs Russia Brazil • Five-year National Oncology • Comprehensive cancer care program, started in 2009 as standard • Regional authorities funding 2-5 • 500,000 patients per linac new determined by Ministry of RT centers per year
Slide 96: Three enabling factors for growth
Three enabling factors for growth Customer Installed base Key opinion Finance management leaders
Slide 97: Customer financing
Customer financing Trends in the marketplace Europe • A tendency that the public sector is becoming more interested/forced in using vendor financing Emerging markets • Traditional banks and leasing companies still have very limited appetite for risk • Government-supported export credits are increasi
Slide 98: Customer financing: Elekta and SEK in Brazil
Customer financing Example: SEK Case Study: Elekta and SEK in Brazil • Vendor Finance Program Agreement est. May 2009 • Implemented in Brazil late summer/autumn 2009 • Outcome – 9 Closed transactions – 3 transactions with a high likelihood of being closed within the next few months Elekta’s and SEK’
Slide 99: A clear strategy for the upgrade business
Region Europe AFLAME A clear strategy for the upgrade business Upgrades in established markets Upgrades in emerging markets Detailed mapping of installed base Enter new sites with “low spec” to identify customer needs product platform Comparison with Assess customer need of new Elekta’s product port
Slide 100: Elekta has strong collaborations with key opinion leaders
Elekta has strong collaborations with key opinion leaders in all major markets in the region Example of collaborations with key opinion leaders Universitaetsklinikum - Mannheim Léon Bérard - Lyon Public AVL - Antoni van Leeuwenhoek Ziekenhuis ICESP – Instituto do Câncer do Estado de São Paulo CPUK –
Slide 101: Summary – Region Europe & AFLAME
Summary – Region Europe & AFLAME Emerging markets growing in importance Elekta gaining market share Market outlook & opportunities for Elekta improving
Slide 102: Human Care Makes the Future Possible
Human Care Makes the Future Possible
Slide 103: Concluding Remarks
Concluding Remarks Tomas Puusepp President and CEO
Slide 104: Elekta well positioned for sustainable profitable growth
Elekta well positioned for sustainable profitable growth Outlook 2015 Growth accelerated to 13-15% • Increased investments in R&D for state-of-the-art clinical solutions • Capture growth opportunities in emerging markets • Build on market leading position in Neuroscience (Leksell Gamma Knife®) and S
Slide 105: Human Care Makes the Future Possible
Human Care Makes the Future Possible